The Spanish government has finally launched its tender of 5G-compatible frequencies in the 700 MHz band around 18 months after it was due to be held. A total of seven blocks amounting to 75 MHz will be offered between 703 MHz and 788 MHz via a secure electronic auction system. Vodafone, Movistar (Telefonica) and Orange the only bidders after Masmovil, the country’s fourth largest network operator, decided not to take part after complaining that authorities failed to heed to its various demands, above the absence of reserved spectrum for new entrants and the lack of specific regional blocks.
The total starting price for the seven blocks of frequencies has been cut from around EUR 1.2 billion to EUR 995 million, not quite as low as Spain’s operators requested, although the duration of spectrum licences has also been extended from the previous limit of 20 years to a maximum of 40 years to give operators more time to write off their investment.
Coverage obligations have also been relaxed, with the operators required to activate 5G services in 450 localities by the end of June 2025, including 30 percent by the end of 2022, rising to 70 percent by July 2024. The country’s largest airports, train stations and motorways must also be covered with the 700 MHz network.
The tender is expected to be resolved in record time in view of the seemingly compatible aims of the three bidders and the absence of competition from rival operators such as Masmovil and Digi Spain. According to a report in El Pais, both the Masmovil group and Digi have already guaranteed substantial network coverage for their customers in the 700 MHz band as a result of their wholesale deals with Orange and Telefonica respectively.
